Speaking at a conference held by The Mortgage Lender in London this week, when asked if there would be more of this activity, Sard said “yes”, suggesting this could happen as lenders fall into “trouble”.
However, he said this might not look like one business buying another as “no one wants to buy liabilities”.
Sard said: “I can see some pieces of organisations being sold to others.”
He suggested this may not happen to mortgage lenders, especially those that had been around for longer, but said as other lenders were owned by private funds and private equity, they could dispose of assets quicker.
He also said there may be stronger lenders with a good proposition and managed their business well, but came across challenges out of their control.
Mind over mortgages: why we need to look after intermediaries’ mental health
Sponsored by Halifax Intermediaries
When asked who Shawbrook would consider buying, Sard said: “If I had a chequebook to buy, I would never tell you. All of us are looking at the market.”
This year, Shawbrook acquired motor finance lender JBR Auto Holdings for an undisclosed amount, while it purchased Bluestone Mortgages last year and The Mortgage Lender (TML) in 2021.
Shawbrook serving different parts of the market
Discussing his recent appointment at Shawbrook, Sard said the organisation wanted to use its brands to “position ourselves in different ways”.
“That’s one of the first things we are going to do. We want to maintain the differentiation about all of them because we think it’s a better way to serve the market,” he said.
He said Shawbrook had a great opportunity and was growing organically, which was its approach, while also investing in its service.
“We want to keep growing in the next three or four years,” Sard added.
